GROUP 1 PRESENTER

ECONOMICS

What Is Economics?
● Economics is a social science that focuses on how products and services are
produced, distributed, and consumed as well as the decisions that people,
corporations, governments, and nations make when allocating resources.
● Economics focuses on efficiency in production and exchange.
● Economics is the study of scarcity and its effects on the use of resources, the
production of goods and services, the development of production and welfare
through time, and a wide range of other relevant issues of significance to society.

MICROECONOMICS AND MACROECONOMICS

Microeconomics (Economics is Personal)
- It only covers a small part of the economy. Considering an individual's
economic decision-making.
Ex. How a local business decides to allocate their funds.

Macroeconomics (Economics is Universal)

- The study of how the economy operates as a whole.
- It includes inflation, price levels, growth rate, national income, gross domestic
product, and changes in employment rates.

KEY CONCEPTS IN ECONOMICS

1. Scarcity
- When a good or service is in more demand than it is offered, the supply is
inadequate for satisfying demand. It pertains to our limited supply of
resources.

2. Supply and Demand

- The market's ability to generate a good or service is referred to as supply,
whereas the market's desire to purchase the good or service is referred to as
demand.

3. Cost-Benefit
- Businesses utilize a cost-benefit analysis as part of a systematic procedure to
determine which options to take and which to disregard. It involves
quantifiable financial measurements, such as profit made or profit earned as a
result of the project's choice.
 4. Incentives
- Economic incentives are defined as a reward or kind of motivation offered in
money terms. It modifies the parties' innate behavior to achieve the desired
response. Subsidies, tax credits, discounts, and cashbacks are a few examples
of incentives.

Two types of incentives:

a. Intrinsic incentives.
- Intrinsic motivation refers to the sense of satisfaction and personal fulfillment
people get after taking specific actions, such as picking up a new skill for fun.

b. Extrinsic incentives.
- Extrinsic incentives involve offering a tangible incentive (like money) for
completing a task or putting one at risk of consequences for failing to do so.

ECONOMIC CATEGORIES
● THE PRODUCTION POSSIBILITIES FRONTIER (PPF)
- is a graphed curve that shows the potential output of two items when they both
rely on the same scarce commodity to be manufactured. The PPF is also
known as the production possibility curve.

ex:
● SUPPLY AND DEMAND THEORY

- According to the law of supply and demand, the interaction between supply
and demand has an impact on pricing.

- The equilibrium price is the one at which supply and demand are balanced.
Suppliers just produce enough of a good or service to meet demand at that price
point, allowing anyone who wants to purchase it.

Law of Supply
- The law of supply implies a positive link between pricing and supply.
Suppliers increase output as prices for goods and services rise, provided that
the profit from each additional unit produced exceeds the cost of production.

Law of Demand
- According to the rule of demand, demand decreases as prices rise. Customers
therefore buy less when prices increase. Particularly if they are able to replace
expensive items with less expensive ones.
What is Economic Development?
● A growth in a nation's wealth and standard of living is referred to as economic
development.
● Economic development implies better real earnings, higher life expectancy, lower
poverty, and increased provision of basic needs.
● Economic development also describes the process by which the general population's
health status, wellbeing, and academic performance improves.

OBJECTIVES OF DEVELOPMENT
● To reduce unemployment
● Achieve economic stability
● Increase the standard of living for all citizens.

CONCEPT
- Economic Development is programs, policies or activities that seek to improve the
economic well-being and quality of life for a community.

NATURE OF DEVELOPMENT ECONOMICS

○ Traditional economics
- Effective distribution of limited resources.
- A traditional economy is one that is based on long-standing traditions,
history, and values. Economic choices like production and distribution
are influenced by tradition. Traditional economies rely on farming,
fishing, hunting, gathering, or some combination of these activities.

○ Political economics
- Social and political process
- Political and economic aspects are combined when we analyze modern
society from a political and economic perspective. This strategy
appears obvious given that nearly everyone would agree that politics
and economics are deeply and irretrievably intertwined—politics
impacts the economy, and the economy affects politics.

○ Development economics
- Role of values, attitudes, and institutions
- Development economics focuses on enhancing living standards in the
world's poorest nations while taking into account variables including
health, education, working conditions, domestic and international
policies, and market conditions.
Principles of Economic Development
1. Set the right goals
2. Grow from within
3. Boost Trade
4. Invest from People and Skills
5. Connect Place

MEASURES OF ECONOMIC DEVELOPMENT

1. Gross Domestic Product (GDP) - measures the value of goods and services
produced by a nation.
2. Gross National Product (GNP) - is the total cost of all finished goods and
services produced by all of a nation's residents during a specific fiscal year, regardless
of the place they were produced. The output produced by a nation's enterprises,
whether they are native or foreign, is also measured by the GNP.
3. The Consumer Price Index (CPI) - is a measure of the average change
overtime in the prices paid by urban consumers for a market basket of consumer
goods and services.

MILLENIUM DEVELOPMENT GOALS

- The United Nations Millennium Development Goals (MDGs) are 8 goals that UN
Member States have agreed to try to achieve by the year 2015.

Millennium Development Goal 1: Eradicate extreme poverty and hunger.

Millennium Development Goal 2: Achieve universal primary education.
Millennium Development Goal 3: Promote gender equality and empower women.
Millennium Development Goal 4: Reduce child mortality.
Millennium Development Goal 5: Improve maternal health.
Millennium Development Goal 6: Combat HIV/AIDS, malaria and other diseases.
Millennium Development Goal 7: Ensure environmental sustainability.
Millennium Development Goal 8: Global partnership for development.
SUSTAINABLE DEVELOPMENT GOALS
- The Sustainable Development Goals are a call for action by all countries – poor, rich
and middle-income – to promote prosperity while protecting the planet.
1. No Poverty
2. Zero Hunger
3. Good Health and Well-Being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry Innovation and Infrastructure
10. Reduced Inequality
11. Sustainable Cities and Community
12. Responsible Consumption and Production
13. Climate Action
14. Life below Water
15. Life on Land
16. Peace, Justice and Strong Institutions
17. Partnerships for the goals
References:

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https://www.investopedia.com/articles/economics/11/five-economic-concepts-need-to-
know.asp#:~:text=At%20the%20most%20basic%20level,many%20decisions%20that
%20humans%20make.

https://boycewire.com/scarcity-definition/

https://www.investopedia.com/terms/m/microeconomics.asp

https://www.britannica.com/topic/supply-and-demand

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https://marketbusinessnews.com/financial-glossary/economic-development/

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